Permian Resources Corporation Announces Final Results and Expiration of Tender Offer for Its 7.75% Senior Notes due 2026

Rhea-AI Summary

Permian Resources (NYSE: PR) announced the final results and expiration of its cash tender offer for its 7.75% Senior Notes due 2026. As of August 2, 2024, the company received tenders for $298,703,000 of the outstanding Notes, representing 99.57% of the aggregate principal amount. The purchase price is set at $1,014.67 per $1,000 principal amount, plus accrued interest. Payment will be made on August 8, 2024. Permian Resources intends to redeem any remaining Notes not purchased in the Tender Offer on or about February 15, 2025. The company plans to fund the purchase using proceeds from a contemporaneous notes offering by its subsidiary, Permian Resources Operating,

Positive

• High participation rate of 99.57% in the tender offer
• Successful debt refinancing strategy
• Potential for improved financial flexibility with new notes offering

Negative

• Slight premium paid on notes ($1,014.67 per $1,000) increases short-term debt costs
• Potential increase in overall debt if new notes offering exceeds tender offer amount

Financial Analyst

The tender offer for Permian Resources' 7.75% Senior Notes due 2026 is a significant financial move. With 99.57% of the outstanding notes tendered, this indicates strong investor confidence in the company's new offering. The purchase price of $1,014.67 per $1,000 principal amount represents a slight premium, which is attractive to noteholders.

The company's plan to redeem remaining notes in February 2025 shows a clear strategy to refinance its debt. This could potentially lower Permian Resources' interest expenses, improving its financial position. However, the success of this strategy depends on the terms of the new notes offering, which weren't disclosed. Investors should watch for details on the new offering to fully assess the impact on the company's debt profile and future cash flows.

Oil & Gas Industry Expert

This refinancing move by Permian Resources, the second-largest pure-play E&P in the Delaware Basin, reflects a broader trend in the oil and gas sector. Companies are taking advantage of current market conditions to optimize their capital structures. By retiring high-yield notes and potentially issuing new debt at lower rates, Permian Resources could enhance its financial flexibility.

The high participation rate in the tender offer suggests strong market appetite for Permian Basin assets. This could indicate positive sentiment towards the company's operations and growth prospects in the region. However, investors should consider how this refinancing aligns with Permian Resources' long-term strategy for responsible acquisition and development of high-return properties in the core of the Delaware Basin.

MIDLAND, Texas--(BUSINESS WIRE)-- Permian Resources Corporation (“Permian Resources,” “we,” “us” or “our”) (NYSE: PR) today announced the final results and expiration of its previously announced cash tender offer to purchase (the “Tender Offer”) any and all of the outstanding 7.75% Senior Notes due 2026 (the “Notes”) of Permian Resources Operating, LLC, a subsidiary of Permian Resources (“OpCo”). As of 5:00 p.m., New York City time, on August 2, 2024, the expiration time for the Tender Offer (the “Expiration Time”), Permian Resources had received tenders for an aggregate principal amount of $298,703,000 of the outstanding Notes, or 99.57% of the aggregate principal amount of the Notes outstanding. These amounts exclude $878,000 aggregate principal amount of the Notes that remain subject to the guaranteed delivery procedures described in the Offer to Purchase and the Notice of Guaranteed Delivery (each as defined below).

The Tender Offer was made pursuant to the terms and conditions contained in the Offer to Purchase, dated July 29, 2024 (the “Offer to Purchase”), and the related notice of guaranteed delivery for the Tender Offer (the “Notice of Guaranteed Delivery”).

In accordance with the terms of the Tender Offer, OpCo will pay the purchase price (the “Purchase Price”) for the Notes validly tendered prior to the Expiration Time or pursuant to the Notice of Guaranteed Delivery on August 8, 2024 (the “Settlement Date”). The Purchase Price to be paid for the Notes is $1,014.67 for each $1,000 principal amount of the Notes validly tendered and accepted for purchase pursuant to the Tender Offer, plus accrued and unpaid interest on the Notes validly tendered and accepted for purchase from the last interest payment date up to, but not including, the Settlement Date. For avoidance of doubt, interest on the Notes will cease to accrue on the Settlement Date for all Notes accepted in the Tender Offer. All Notes purchased on the Settlement Date will subsequently be retired.

There can be no assurance that any Notes will be purchased. The Tender Offer is conditioned upon the satisfaction of certain conditions, including the completion of a contemporaneous notes offering (the “Notes Offering”) by OpCo on terms and conditions (including, but not limited to, the amount of proceeds raised in such Notes Offering) satisfactory to OpCo and Permian Resources. The Tender Offer is not conditioned upon any minimum amount of Notes being tendered. The Tender Offer may be amended, extended, terminated or withdrawn. OpCo intends to use a portion of the net proceeds of the Notes Offering to fund the purchase of the Notes in the Tender Offer.

Subject to completion of the Tender Offer, we intend to redeem all Notes not purchased in the Tender Offer on or about February 15, 2025 (the “Redemption”) at a redemption price of 100.000% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date.

OpCo has retained J.P. Morgan Securities LLC to serve as the exclusive Dealer Manager for the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to J.P. Morgan Securities LLC, Liability Management Group, at (866) 834-4666 (toll-free) or (212) 834-4818 (collect).

About Permian Resources

Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. Permian Resources’ assets and operations are concentrated in the core of the Delaware Basin, making it the second largest Permian Basin pure-play E&P.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, including statements regarding the Notes Offering and the use of proceeds therefrom, including the Tender Offer and the timing and outcome thereof and the Redemption, our strategy, plans and objectives of management, are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

We caution you that any forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. Factors which could cause our actual results to differ materially from the results contemplated by forward-looking statements may include, but are not limited to, those set forth in Permian Resources’ filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and its subsequent Quarterly Reports on Form 10-Q, under the caption “Risk Factors,” as may be updated from time to time in Permian Resources’ periodic filings with the SEC.

Should one or more of the risks or uncertainties described in this press release occur, or should any underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805257845/en/

Hays Mabry – Vice President, Investor Relations

(432) 315-0114

ir@permianres.com

Source: Permian Resources Corporation

FAQ

What was the participation rate in Permian Resources' (PR) tender offer for its 7.75% Senior Notes due 2026?

The participation rate in Permian Resources' (PR) tender offer was 99.57%, with tenders received for an aggregate principal amount of $298,703,000 of the outstanding Notes.

What is the purchase price for Permian Resources' (PR) 7.75% Senior Notes in the tender offer?

The purchase price for Permian Resources' (PR) 7.75% Senior Notes in the tender offer is $1,014.67 for each $1,000 principal amount, plus accrued and unpaid interest.

When is the settlement date for Permian Resources' (PR) tender offer?

The settlement date for Permian Resources' (PR) tender offer is August 8, 2024.

What are Permian Resources' (PR) plans for any remaining Notes not purchased in the tender offer?

Permian Resources (PR) intends to redeem all Notes not purchased in the tender offer on or about February 15, 2025, at a redemption price of 100.000% of the principal amount, plus accrued and unpaid interest.